If you’re looking to avoid those costly credit card interest charges, then a zero percent credit card could be just what you need. Now, it’s important to realize that there’s no such thing as a credit card that stays at zero percent APR for as long as you have it.
The card issuer would lose all sorts of money on a deal like that. When you see an advertisement for a zero percent credit card, it’s always an introductory offer, which means the zero percent APR lasts for a set amount of time. After that time is up, the APR increases.
So, why get a credit card because it has zero percent APR if it’s not going to stay that way? These type of credit cards come in handy in several situations, including:
• Paying down debt by consolidating it onto the card through a balance transfer
• Making a large purchase or multiple smaller purchases and paying them off without any interest charges during that introductory period
If you need to pay any major expenses, a zero percent credit card is an excellent choice because you can pay them off over time and not worry about interest, like you would with another credit card. As long as you pay it back before the APR is set to increase.
There’s no shortage of zero percent credit cards available, and it can be tough deciding which one is the best choice. Here are the top five currently on the market:
1. Chase Freedom Unlimited Credit Card
APR: Zero percent for the first 15 months on both purchases and balance transfers, then increases to between 15.49% and 24.24% variable APR.
Rewards: 1.5 percent cash back for every purchase, rewards never expire as long as you have the account open.
Sign-up Bonus Offer: $150 bonus for spending at least $500 in the first three months after opening the account, $25 bonus for adding your first authorized user to the account and making a purchase within this same three-month time period.
Annual Fee: No
If you prefer the simplicity of cash back over figuring out how to best use reward points, then the Chase Freedom Unlimited may be the card for you. The 1.5 percent cash back rate provides a solid return on your spending. The 15-month zero percent APR period is one of the longer introductory periods available, giving you plenty of time to pay off your balance.
Considering this is a zero percent credit card and the reward offers for those usually aren’t as good as the offers for higher interest credit cards, the $150 sign-up bonus and the 1.5 percent cash back rate are both impressive compared to the competition.
2. Amex EveryDay Card
APR: Zero percent for the first 12 months on both purchases and balance transfers, then increases to between 13.49% and 23.49% variable APR.
Rewards: 2 points per dollar spent at U.S. supermarkets, capped at $6,000 per year, 1 point per dollar spent on all other purchases. Earn 20 percent more points for using the card at least 20 times on purchases in one billing period.
Sign-up Bonus Offer: 10,000 reward points for spending at least $1,000 in the first three months after opening the account.
Annual Fee: No
Double points on supermarket purchases makes the Amex EveryDay card valuable if you plan to put all your grocery purchases on it. If you don’t plan to do that, you could get a better return from another card. Even if you get the 20 percent bonus every month, you’ll still only be earning 1.2 points per dollar spent.
However, considering that most people buy their groceries at the supermarket, it’s not difficult to rack up extra reward points using this card. This card is also good if you like to travel, because your reward points are worth double when you redeem them for travel rewards through the American Express travel portal.
3. BankAmericard Cash Rewards Credit Card
APR: Zero percent for the first 12 billing cycles on purchases and zero percent on balance transfers made within the first 60 days, then increases to between 13.49% and 23.49% variable APR.
Rewards: 3 percent cash back for purchases at gas stations, 2 percent cash back for purchases at grocery stores, and 1 percent cash back on all other purchases. Gas station and grocery store bonuses are capped at $2,500 each quarter. Bank of America customers earn a 10 percent cash back bonus for redeeming cash back into a Bank of America checking or savings account.
Sign-up Bonus Offer: $100 for spending at least $500 in the first 90 days after opening account.
Annual Fee: No
The BankAmericard Cash Rewards card has great cash back bonuses for everyday purchases, and the redemption bonus makes it an especially good choice for Bank of America customers.
The only area this card is lacking compared to other zero percent cards is the zero percent balance transfer time frame of 60 days, which is much shorter than many of its competitors. That being said, the top-notch cash back offers more than make up for that.
4. Discover It Card
APR: Zero percent for the first 14 months on both purchases and balance transfers, then increases to between 11.49 and 23.49% variable APR.
Rewards: 5 percent cash back for purchases in rotating categories that change every quarter (5 percent cap varies depending on the category) and 1 percent cash back on all other purchases.
Sign-up Bonus Offer: Dollar-for-dollar match of all the cash back you earn in the first year using the card.
Annual Fee: No
The Discover It card offers the highest potential return of the zero percent credit cards. If you typically use your card for several different types of spending, then you’ll be able to earn a large amount of cash back through the rotating category offers.
Whether the dollar-for-dollar match is better than other available bonus offers depends entirely on how much you use your card. If you spend quite a bit, you can expect to receive a solid bonus at the end of the year.
5. Amex Blue Cash Everyday Card
APR: Zero percent for the first 12 months on both purchases and balance transfers, then increases to between 13.49% and 23.49% variable APR.
Rewards: 3 percent cash back for purchases at U.S. supermarkets, 2 percent cash back for purchases at gas stations, and 1 percent cash back on all other purchases. Supermarket and gas station bonuses are capped at $6,000 per year.
Sign-up Bonus Offer: $100 for spending at least $1,000 in the first three months after opening account.
Annual Fee: No
The Amex Blue Cash Everyday card is very similar in terms of cash back bonuses to the BankAmericard Cash Rewards card, albeit with the bonuses for supermarkets and gas stations switched. Choosing between the two may be as simple as figuring out in which category you typically spend more money.
It’s not easy choosing between the best zero percent credit cards on the market, as they all have similar features. If you’re having trouble picking, take a look at your normal monthly expenses to determine which bonus offers will earn you the most extra points or cash back. Keep in mind that each card is among the best, so you really can’t go wrong.
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